Please Do Flashcards
How do you work out return on capital employed?
Operating profit / Capital employed( this is shareholders funds and long term loans) X 100. Shown as a %
How do you work out the operating profit margin?
Operating profit / sales X 100. This is shown as a %
How do you work out the gross profit margin?
Gross profits / sales X 100. This is shown as a %
How do you work out expenses:sales
expenses / sales X 100
How do you work out current ratio?
Current assets / current liability’s: 1
How do you work out acid test ratio?
Current assets - inventory/ current liability’s :1
How do you work out inventory days?
Inventory / cost of sales x 365
How do you work out trade receivable days?
Trade receivables / credit sales x 365
How do you work out trade payable days?
Trade payables / credit purchases x 365
